Are Banks Required to give Florida Homeowner's Modifications?
Without getting into too much detail, the short answer is no. Financial institutions that received bailout money are only required to "consider" customers for modifications. Current law does not force banks to enter into modifications with struggling homeowners. Very few customers actually are put in a permanent modification.
Some loans are modified by rolling the arrears to the back of the loan but the banks are not extending the length of the loan. Therefore, in many cases, homeowners are approved for the modification but their monthly payment goes up! In some instances, customers are put on short term or trial modifications. In some cases, if the customer makes it through this trial period, then they will be put on a permanent modification.
However, in many instances, the customer is not rewarded by completing the trial period and is denied permanent modification. The loan modification process can be very frustrating and time demanding. Because the program is voluntary, its almost become a complete waste of time.
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Greg Gilbert
Keith Maynard
